Yahoo! (YHOO) Sees Buying Interest on Potential Japan Exit
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Yahoo! (Nasdaq: YHOO) is seeing investor interest today, following reports that the search giant would be exiting the Japanese market by unloading its stake in Yahoo Japan.
Yahoo! is up 3.3% so far today, but shares have been up as much as 4% on the day. Rival Google, Inc. (Nasdaq: GOOG) is also trading higher, though more marginally, up just 0.3%.
According to several sources, Yahoo! is in talks with Softbank Corp. to unload their 35% stake in Yahoo! Japan. The total stake was valued at about $6.88 billion as of yesterday's closing prices. Softbank already owns 42% of the unit, according to a Reuters report.
The Japanese search unit is the largest in the country with one billion hits per day, according to the WSJ.
Some speculation surrounds whether or not Yahoo! will continue to unlock value in other Asian assets, possibly with an IPO of Alibaba's Taobao.com retail site or its Alipay.com. Yahoo! controls a 40% stake in Alibaba, which is a prominent Chinese internet company.
The cash freed up could help Yahoo! to take a more aggressive stance against Google, sources said.
Yahoo! is up 3.3% so far today, but shares have been up as much as 4% on the day. Rival Google, Inc. (Nasdaq: GOOG) is also trading higher, though more marginally, up just 0.3%.
According to several sources, Yahoo! is in talks with Softbank Corp. to unload their 35% stake in Yahoo! Japan. The total stake was valued at about $6.88 billion as of yesterday's closing prices. Softbank already owns 42% of the unit, according to a Reuters report.
The Japanese search unit is the largest in the country with one billion hits per day, according to the WSJ.
Some speculation surrounds whether or not Yahoo! will continue to unlock value in other Asian assets, possibly with an IPO of Alibaba's Taobao.com retail site or its Alipay.com. Yahoo! controls a 40% stake in Alibaba, which is a prominent Chinese internet company.
The cash freed up could help Yahoo! to take a more aggressive stance against Google, sources said.
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